Tuesday, June 6, 2017

"Tesla: First $439, Then..." (TSLA)

The stock is up $6.51 at $353.83. That's on top of a $7.47 gain yesterday.

From Barron's Stocks to Watch:

Shares of Tesla (TSLA) have soared more than 60% so far this year heading into the scheduled launch of the Model 3 next month. Can the gains keep coming?

You betcha. In fact, Pacific Crest's Brad Erickson and Elliot Arnson contend that Tesla could trade as high as $439 following the Model 3's launch. Just don't expect them to say there. Erickson and Arnson explain why:

We
continue to have a near-term positive bias on TSLA. We are raising our
bull case to $439 and believe this is actively in play with Model 3
launching next month.One team of analysts
contends Tesla's shares could break $400 with the launch of the Model 3.
That's when the problems could start....MORE

...It is just so dangerous to put valuation (as compared to fraud) shorts on in a bull market.
We have had a general rule, "Don't short Tesla" virtually since the IPO,
that we've violated on three occasions, fortunately profitable but it
is tough to tell if it was worth the risk.